Explores the economic implications of the single European market (SEM). Alternative economic explanations of key issues are put forward beginning with the SEM. The SEM will deliver lower prices and greater efficiency if it stimulates competition and allows the realisation of economies of scale. Continues by exploring how EU competition policy must be applied to prevent governments and firms from frustrating the realisation of greater competition or further economies of scale. Questions of regional policy, such as will the SEM minimise or accentuate regional differences, are considered, as is the matter of whether the SEM will enhance the EU’s long‐term growth prospects. Questions of macroeconomic policy, such as should the EU prioritise the fight against inflation above all other macroeconomic policy objectives are also considered.